Because Prices Are Sticky in the Short-Run,when the Federal Reserve

question 26

Multiple Choice

Because prices are sticky in the short-run,when the Federal Reserve raises the federal funds rate

• A)nominal interest rates fall.
• B)real interest rates rise.
• C)inflation falls.
• D)real interest rates fall.

---

Definitions:

Madison Grant

An American lawyer, historian, and author known for his work in conservation and for his controversial views on race and eugenics in the early 20th century.

Anglo-Saxon

A term referring to the Germanic inhabitants of England between the 5th and 11th centuries, and often used in wider contexts relating to English history and culture.

Eastern Europe

A geographical and cultural region in Europe, generally described as encompassing many countries to the east of Germany and west of Russia.

Feminists

Advocates for women's rights and equality between the genders, aiming to dismantle systemic inequalities and social norms limiting women's roles.